Kraken has switched its cross-chain provider from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP), Cointelegraph reported on May 15 local time.
Kraken decided to apply CCIP as its dedicated cross-chain infrastructure for Kraken Wrapped Bitcoin (kBTC) and all wrapped tokens it will launch in the future.
Kraken cited security and a risk management framework as the reason for choosing CCIP. It pointed to verification, default security design, 16 independent nodes and native rate limits.
The shift coincides with a broader move in the crypto sector to review cross-chain infrastructure after the KelpDAO hack in April.
LayerZero has been embroiled in controversy over claims it did not respond adequately after the KelpDAO hack.
Moves to leave LayerZero are continuing beyond Kraken. KelpDAO is in the process of moving to Chainlink CCIP. Solv Protocol also announced it is moving tokenised bitcoin cross-chain infrastructure to CCIP. Onchain reinsurance protocol Re said it is transferring total value locked of $475 million from LayerZero to the Chainlink protocol.